The Picture is Fuzzy for Cablevision

WE ARE INITIATING coverage of
Cablevision
with an Underperform rating in the context of our Cautious view.

Cablevision has unique urban assets, an aggressive multi-product marketing strategy and a relatively strong track record of building value with non-cable assets that should all help to support its shares over time.

But we do not see upside to the shares today due to uncertainty surrounding the pending spin-off of Rainbow Media Enterprises.

In addition, other risks attend an investment in Cablevision, including potential relative slowing of growth at the company due to the maturity of its systems, and a high market share that may be vulnerable.

There's also relatively high leverage that may heighten volatility in the company's shares as investor sentiment surrounding cable stock valuation shifts.

--Chris Hussey

The companies mentioned in Hot Research are subjects of research reports issued recently by investment firms. Their opinions in no way represent those of Barron's Online or Dow Jones & Company, Inc. Share prices at the time the report was issued and the date of the report are in parentheses.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.